Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
July 5, 1993
Ottawa District Office Head Office
Client Assistance Financial Industries
Division
Attention: Estelle Donoghue D. Duff
169-14 957-8953 4-930729
XXXXXXXXXX
Further to our telephone conversation (Donoghue/Duff) of March 22, 1993, we are forwarding correspondence from the aforementioned taxpayers to the Minister of National Revenue regarding their participation in the RRSP Home Buyers' Plan and the contributions they made to their RRSPs resulting in a possible income inclusion under provisions of the plan.
As indicated in their letter they would like to receive written confirmation of the procedures to follow in order to avoid these income inclusion provisions. They wish to either withdraw their RRSP contributions or recharacterize them as repayments of the amount withdrawn under the Home Buyers' Plan. Although contributions cannot simply be recharacterized as repayments, this result can be achieved by withdrawing the contribution and then resubmitting it to the RRSP as a repayment of the amount withdrawn under the plan. Technically all of the withdrawals, whether or not they are repaid into the RRSP, result in benefits from an RRSP pursuant to subsection 146(8) of the Act which can be offset by a deduction under 146(8.2) such that the net effect on income is nil. From the taxpayers' letter they may not be aware of this.
We see no problem with the other issues in their letter and would appreciate you providing the written confirmation requested. Please provide us with a copy of your response.
Chief, Deferred Income Plans Section Financial Industries Division Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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